Tom Lee is sticking with his 2021 Bitcoin $100K price prediction

Longtime Bitcoin (BTC/USD) bull Tom Lee has been modeling throughout 2021 for the price of the digital currency to hit $100,000 by the end of the year. On Tuesday, when Bitcoin erased all of its gains for 2021, the founder of Fundstrat Global Advisors reiterated his six-digit price target.

Bitcoin undergoing a ‘very rough patch’

Bitcoin is stuck in a “very rough patch” and the very near-term outlook “doesn’t look great,” Lee said on CNBC’s “TechCheck.” Yet this may not matter as Bitcoin tends to record most of its annual gains in just 10 days. As such, Bitcoin still has half a year left on the calendar to record explosive gains in 10 days and “potentially touch $100,000 or higher.”

The fact that Bitcoin is able to hold the $30,000 level is “pretty impressive,” he said.

2021 avoided a ‘crypto winter’

Many investors are skeptical how the price of Bitcoin at $30,000 can double to $60,000 and then nearly double again to reach Lee’s price target. He argues that the downside seen in Bitcoin in 2021 is not as bad as it would have been in prior years.

Bitcoin is suffering from negative catalysts out of China in terms of banning crypto mines. In the US, Bitcoin is undergoing “tremendous regulatory scrutiny.”

Recent events from China is a ‘positive development’

When asked if crackdowns out of China is in fact a concerning event, Lee said Bitcoin’s large exposure to the country was a negative thesis for Bitcoin’s long-term outlook. He equated this to investors who don’t want to see large amounts of oil production coming out of politically unstable regions. He emphasized: